Australia is the fourth most expensive country in the world for international money transfers, behind South Africa, Japan and France, new figures show.
Figures from the World Bank for Q2 2014 show globally, commercial banks are the most expensive method of sending money – about double the cost of sending money through Money Transfer Operators.
According to new research by financial comparison site Mozo, specialist Money Transfer Operators like OzForex are on average 5c per dollar cheaper than the big four banks. For customers transferring thousands of dollars, this difference adds up to hundreds of dollars.
Mozo identified OzForex as the most competitive money transfer option in Australia for four currencies tested (GBP, EUR, NZD, USD), based on a transfer of $15,000.
OzForex's rates offer savings of between $488 (for USD) and $797 (for EUR) Australia's four major banks.
Mozo has recently unveiled a new International Money Transfers comparison page which shows a stark difference between the exchange rates of Australia's big four banks and specialist currency providers.
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OzForex compared (transfer Amount: AUD $15,000) |
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|
FROM |
TO |
AMOUNT RECEIVED |
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|
OzForex |
Big Four (Avg) |
Savings (AUD) |
||
|
AUD |
EUR |
€10,393 |
€9,841 |
$797 |
|
AUD |
GBP |
£8,179 |
£7,753 |
$781 |
|
AUD |
NZD |
NZ$16,433 |
NZ$15,764 |
$611 |
|
AUD |
USD |
US$13,296 |
US$12,863 |
$488 |
|
Exchange rate comparisons - September 22, 2014 at 4.55pm. Source: OzForex |
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OzForex CEO Neil Helm says online providers generally have lower overheads because they don't have a physical branch network to support. Their infrastructure is also specifically designed for international money transfers making processes more efficient.
"One of the things that makes us unique is that we use domestic bank accounts around the world, this makes the transfer process faster and simpler for our clients, Mr Helm said. “It also brings down the costs for our clients by eliminating some of the fees.
"We specialise in international money transfers and so dedicate all of our time and resources to this cause. The banks have many competing priorities so it may not be a focus for them."
The OzForex Group is a global provider of online international payment services for consumer and business clients. The OzForex Group technology also powers international money transfer services of Travelex, Moneygram, ING Direct, Macquarie International Money Transfers and other international financial institutions.
